Yeah, because giving all the merchants infinite amounts of gold so you can sell enormous stocks of goods is so realistic.
Where did I say I gave them infinite amounts of gold? Duh much?
I'm selling $80,000 swords for $5000. Why do they need to be worth $80,000? You're not going to go to the town merchant and buy one.
Oblivion does this better. It's rare to sell enough that the merchant's cap is reached, but it happens from time to time. Regardless, you're never inconvenienced by holding gear you can't sell. It doesn't take a week to sell all the stuff you're carrying.
I think I need to remove the Scamp Creeper and Drunken Mud Crab, then reduce the values of all the most powerful magic gear. Then you can enjoy more time adventuring away from the lure of treadmill leveling. What's the most expensive weapon or armor in Oblivion, and how much cash does the richest merchant hold (I haven't played it enough to know)?
Oh, and change the reset timing for dungeons, so they don't fill back up with monsters as soon as you close the door. Oblivion has it at a week, right? That would work, and give you reason to go out and explore, travel, have fun.
Morrowind stops being fun the moment it loses its challenge, which is right about level 15. You keep getting tougher, while the monsters stay the same and start dropping enormously expensive stuff. The challenge has to remain constant over the life of the character.